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ELRCPartially AllowedNot stated (Cause commenced 14 August 2014)· [2015] KEELRC 721 (KLR)

Loice Wairimu Kamau v George Kangara Githigia & 2 others [2015] KEELRC 721 (KLR)

Employment and Labour Relations Court
24 July 2015
886 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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What this practically means

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Executive summary

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The Claimant was employed by Nyahururu Butchers Self Help Group as a messenger from 2 September 2002 at a monthly wage of Kshs 4,500/-, later raised to Kshs 7,000/-. She resigned by notice dated 17 November 2011 effective 1 January 2012 and, through her union, demanded unpaid terminal dues comprising commuted leave, house allowance for 36 months, overtime and service pay totalling Kshs 97,568/60. After an unresolved trade dispute reported to the Labour Office, she sued the Group and its Chairman and Secretary on 14 August 2014. The sole issue was whether the heads of claim were proved. On annual leave, the Respondents' witness admitted leave pay had been computed but not collected, and the Court awarded Kshs 6,192/30. On house allowance, the appointment note showed the wage was 'without any other benefits'; applying section 9 of the repealed Employment Act, cap. 226 and section 31 of the Employment Act, 2007, the Court held the wage was not consolidated and, the sum not being controverted, awarded Kshs 37,800/-. The overtime claim of Kshs 19,384/- failed because the Claimant did not disclose agreed weekly hours or the applicable statutory minimum hours. Severance pay/gratuity was refused: severance applies only to redundancy, and service pay under section 35(5) requires termination, whereas the Claimant resigned. The Court awarded a total of Kshs 43,992/- with costs of Kshs 15,000/- to the Claimant. Judgment was delivered in Nakuru on 24 July 2015 by Radido Stephen, Judge.

Key legal issues

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01

Annual leave pay in lieu

Holding

Awarded as claimed; the Respondent's witness admitted leave pay was computed but never collected, with no computation given

Reasoning

The Claimant's resignation letter showed leave due on 2 September 2011 was untaken. The 1st Respondent confirmed leave pay was calculated but not collected, though no computation was produced. The Court treated this as an admission and awarded the claimed Kshs 6,192/30 without further proof.

p. 2
02

House allowance

Holding

Awarded at Kshs 37,800/-; the wage of Kshs 7,000/- was not consolidated and no housing was provided

Reasoning

The appointment note showed the wage was 'without any other benefits'. Under section 9 of the repealed Employment Act, cap. 226 and section 31 of the Employment Act, 2007, the employer had to provide housing or a rent allowance, and wages are not consolidated unless expressly stated. The Respondents did not controvert the sum claimed, so the award was justified.

p. 2
03

Overtime

Holding

Dismissed for want of proof

Reasoning

The Claimant asserted she worked Saturdays until 4.00pm while the Respondent's witness said work ended at 1.00pm on Saturdays. The Claimant did not disclose agreed weekly working hours, their spread over the week, or the statutory minimum hours for the sector, so the claim failed in contract and statute.

p. 2
04

Severance pay/gratuity/service pay

Holding

Dismissed; resignation is not redundancy and does not attract service pay under section 35(5)

Reasoning

No contractual or statutory foundation was laid for severance pay or gratuity. Severance pay is confined to redundancy, and the Claimant resigned. Even if construed as service pay under section 35(5) of the Employment Act, 2007, entitlement requires termination of employment, which resignation is not.

p. 2

Legal principles established

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  • An employer has a statutory obligation to provide housing accommodation or pay a reasonable house allowance, and under the Employment Act, 2007 a wage is presumed not consolidated unless expressly stated so.
  • Severance pay is only payable in cases of redundancy, not on resignation.

Court orders

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  1. 1.Respondents to pay the Claimant annual leave of Kshs 6,192/30
  2. 2.Respondents to pay the Claimant house allowance of Kshs 37,800/-
  3. 3.Total award of Kshs 43,992/- to be paid to the Claimant
  4. 4.Heads of claim for overtime and gratuity dismissed
  5. 5.Claimant to have costs of Kshs 15,000/-

Authorities

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Legislation

  • Employment Act, cap. 226 (repealed)section 9
  • Employment Act, 2007section 31
  • Employment Act, 2007section 35(5)
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction over a trade dispute/terminal dues claim (Cause)

Key timeline

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Practical implications

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Frequently asked questions

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Cite this brief

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Cite this brief

Caselaw, "Loice Wairimu Kamau v George Kangara Githigia & 2 others [2015] KEELRC 721 (KLR)", Case Analysis (2015). Not stated (Cause commenced 14 August 2014). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2015/721/eng@2015-07-24

Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.